North Carolina Down Payment Support Systems

Online Merchant account - The North Carolina Housing Finance Agency got two great plans for first-time Home Buyers. These systems will be the deposit Assistance System and the Mortgage Credit Certificate.

Also you buy a house and December 1, 2009 and should you meet the requirements for one of these programs, it is also possible to be eligible for the $8,000 tax credit just enacted into law.

First, who's a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a house within the past three years. That is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with moderate and low incomes. The MCC takes this a step further. An MCC “reduces your tax liability based on a percentage of the mortgage interest which you pay.

Should you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your federal income taxes. It's possible for you to save up to $2,000 on your taxes.

You may find a way to combine this should you qualify for 2009, for the MCC. This might reduce a purchaser's tax liability by $10,000.

Household income is defined as the “gross income of the mortgagor and every other man expected to live in the residence who's 18 years of age or older.”

House price limitations that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Persons $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Price Limits New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

The purchaser just needs to pay and the load would pay as much as $8,000 of the remaining balance.

This program has more rigorous income limitations than the MCC program outlined above. Like the MCC program, it could be used together with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit help, nonetheless, cannot be employed in combination together with the MCC. This is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Persons $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing Home $210,000